This refers to the report “Cabinet clears Direct Taxes Code with some relief” (August 27). Since the Direct Taxes Code (DTC) will come into effect in April 2011, the “relief” that is being calculated today will vanish by that time due to ever-rising prices.
Taxpayers have had little relief from the increase in the exemption limit and restructuring of tax slabs in the annual Budgets. Finance Minister Pranab Mukherjee has said once the DTC comes into effect, tax rates (and presumably the exemption limit as well) will be taken in the schedule (of the Bill) so that they need not be changed every year. Obviously, the exemption limit and tax rates as proposed in the DTC are to remain for many years to come, and the government can in no way ensure that inflation will not go up.
Thus, the DTC is a big fraud and a cruel joke by a callous government. It should be opposed in every possible way. The DTC provisions should remain part of the annual Budget and the exemption limit should be linked with inflation.
M C Joshi, Lucknow
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